AFI increases stake in Moscow and Volgograd projects

The Africa-Israel subsidiary increased its take in the Tverskaya Zastava project from 25% to 95% for $82.9 million, and is negotiating to buy the rest.

Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) subsidiary AFI Development plc (LSE:AFID) has purchased stakes from its partners in three projects in Moscow and Volgograd.

AFI has acquired 70% of Plaza IV, the holding company which is developing the Tverskaya Zastava redevelopment project, for $82.9 million, increasing its stake in the company to 95%. The company has negotiated an option to buy the outstanding 5% at $1.4 million per one percent. The Plaza IV project will include 63,278 square meters of office and 2,976 square meters of retail space, plus an underground parking garage. The entire Tverskaya Zastava redevelopment project, including the shopping center and five-star hotel, will have 465,115 square meters of space for lease when completed. The project is located in central Moscow, close to the Belorussky railway station.

In a separate transaction in central Moscow, AFI purchased an additional 2.2-hectare lot adjacent to the company’s Yauza riverfront Pochtovaya project for $37 million. The site is occupied by 15,000 square meters of buildings that will be demolished or redeveloped. The entire project will have 80,000 square meters of hotel and residences and 80,000 square meters of offices, as well as underground parking. AFI has purchased the site for $141.3 million altogether.

AFI added that its plans to buy adjacent lots to its current development projects for the redevelopment of entire city neighborhoods into comprehensive upscale schemes, such as its Tverskaya Zastava and Ozerkovskaya Embankment projects.

In a third transaction in Volgograd, AFI has acquired full control, after acquiring the 22% stake held by a partner for $17 million. The company plans to build a 150,000-square meter retail, office, hotel, and project on the site.

Today’s three purchases total $137 million. AFI Development held its IPO at a company value of $7.3 billion, after money, earlier this year.

Published by Globes [online], Israel business news - www.globes.co.il - on October 22, 2007

© Copyright of Globes Publisher Itonut (1983) Ltd. 2007

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